Symmetry And Economic Invariance
Symmetry And Economic Invariance
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DOI:
10.1007/978-4-431-54430-2
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发表时间:
1997-11
期刊:
影响因子:
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通讯作者:
R. Sato;R. Ramachandran
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文献类型:
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作者:
R. Sato;R. Ramachandran
This book provides an introduction to the application of group theory, a mathematical tool, to examine the structure of economic models. Even for models that can be analyzed by mathematical methods now standard in economics, group theory provides better intuition. Complex conditions that characterize the equilibrium path of a dynamic model can be expressed as a simple conservation law. Reflecting recent developments and a broadening interest among economists, this new enhanced edition has two parts. The first part reproduces the chapters from the 1998 edition of Symmetry and Economic Invariance and the second consists of four chapters (Chapters 8–11) and a mathematical appendix (Chapter 12). The appendix supplements a survey of mathematical techniques in Chapter 1. We first met symmetry in the philosophy of Pythagoras, who used it to attribute mythical properties to some numbers and geometric figures. In contrast, the twentieth-century physicists under the influence of analytical philosophy used it to expunge classical physics of concepts that have no observable consequences! Sophus Lie showed how continuous groups can be used to determine the integrability of differential equations while his contemporary Felix Klein used discrete groups to codify Euclidean and non-Euclidean geometries. Today mathematicians relate group theory to differential topologies while simultaneously developing geometric methods that provide visual interpretation of analytical results. We have adopted in diagrammatic analysis in economics; the interpretations we provide are consistent with the positivist traditions now prevalent in our science. Chapter 1 provides a heuristic introduction to group theory. Basic mathematical techniques are introduced and the use of group theory to determine the symmetric invariance of economic models is explained. Chapter 2 uses group theory to analyze the controversy over whether productivity growth can be decomposed into that arising from technical progress and that from scale economies. We argue, following Sato (1981), that certain types of technical progress are indistinguishable from scale economies generated by particular types of production functions. In the process we develop additional analytical concepts in group theory. v